The European Union’s sweeping AI Act will officially take effect on August 2, targeting general-purpose AI systems such as OpenAI’s ChatGPT. However, enforcement of these rules by the bloc’s newly formed AI Office will not begin until at least mid-2026, according to EU officials.

The AI Act introduces a tiered regulatory approach based on risk, with stringent rules for high-risk uses and outright bans on AI deemed to pose unacceptable threats. Companies that breach the rules could face fines of up to €35 million or 7% of global revenue.

Calls for postponement have also emerged from Europe’s corporate heavyweights. More than 40 companies — including Airbus, Mercedes-Benz, Philips, and AI startup Mistral — signed an open letter urging a two-year delay, citing regulatory complexity and risks to European competitiveness.

Still, the European Commission is pressing ahead. “Today’s publication of the final version of the Code of Practice for general-purpose AI marks an important step in making the most advanced AI models available in Europe not only innovative but also safe and transparent,” said Henna Virkkunen, the Commission’s executive vice president for tech sovereignty, security, and democracy.